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Econ w8 PT 1

COLLAPSE

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“Money and the Financial System” Please respond to the following:

  • From the scenario, describe the business implications of an increase in the required reserve ratio from 4% to 7%. Explain how that would affect the business’s strategic options.
  • Explain how the change in the required reserve ratio would influence the business price levels and consequently the price levels in the economy. Determine the impact the interest rate would have in relation to the copy center’s 

 

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